Master of Business Administration: Gardenia Bakeries Marketing Report

This report provides a comprehensive marketing analysis of Gardenia Bakeries, a subsidiary of a food listed company prominent in Asian markets. It begins with an introduction to Gardenia's history, its founder, and its evolution in the bread market, highlighting its product diversification and market leadership. The report then delves into Gardenia's perceived value, consumer behavior, and marketing objectives. A SWOT analysis is presented, evaluating Gardenia's strengths, weaknesses, opportunities, and threats, including its product quality, distribution network, and competitive landscape. The consumer decision-making process, including need recognition, information search, evaluation of alternatives, purchase decisions, and post-purchase behavior, is analyzed. The report also examines Gardenia's segmentation, targeting, and positioning (STP) strategies, focusing on market segmentation through psychographic, demographic, and behavioral approaches. A competitive analysis, particularly of Massimo, is included, along with a discussion of the marketing mix, covering product, place, price, physical evidence, process, people, and promotion strategies. Finally, the report offers recommendations and a conclusion summarizing the key findings and insights into Gardenia's marketing success and challenges.

Component Name: Marketing Management
Lecturer: Vincent Wee
Student Name: Selva Kumar S/O Subramaniam
Student Number: 0080MWYMWY0620
MASTER OF BUSINESS ADMINISTRATION
University of Wales Trinity Saint David
12/08/2020
“I declare That this assignment is all my own work and that, I have acknowledged all
materials used from the published or unpublished work of other people. All references have
been duly cited”.
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TABLE OF CONTENT
1.0 Introduction……………………………………………………………………………4
Customer Perceived Value
Consumer Behaviour
Marketing Objective
Marketing Value
2.0 Consumer Decision Making Process…………………………………………………5
3.0 SWOT ANALYSIS……………………………………………………………….6
2.1 Need Recognition……………………………………………………………...7&8
2.2 Information Search……………………………………………………………9
2.3 Evaluation of alternatives…………………………………………………….
2.4 Purchase Decision…………………………………………………………….
2.5 Post -Purchase Behaviour………………………………………………….10
3.0 Segmentation, Targeting, and Positioning (STP) of ………………………………11.
3.1 Market Segmentation……………………………………………………...12
3.1.1 Demographical Segmentation……………………………………
3.1.2 Psychographic Segmentation…………………………………….
3.1.3 Behavioural Segmentation………………………………………...
3.2 Targeting Marketing……………………………………………………………
3.3
3.4 Market Positioning……………………………………………………….
i. 4.0 Competitive Analysis of Gardenia …………………………………...13
ii. Marketing Mix Action Plans (3 Year) ………………………………………………14
iii. Marketing Object
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a. Product
……………………………………………………………………….15
b. Place………………………………………………………………….
c. Price………………………………………………………………16
d. Physical Evidence……………………………………………………………...
e. Process……………………………………………………………...
f. People………………………………………………………………………….
g. Promotion………………………………………………………………………
…….
iv. 5.8 Recommendations………………………………………………………………17
v. 6.0 Conclusion………………………………………………………………………18
vi. Annexure……………………………………………………………………………19
vii. References……………………………………………………………………………
20.
Introduction
Gardenia Bakeries is subsidiary of a food listed company. Gardenia is a quite good familiar in
Asian market like Gardenia Singapore, Gardenia Philippines, Gardenia China. In 1969
Gardenia Bakeries was born in East Malaysia as small bakery. Gardenia founded by an
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American named Horatio Scy Slocumm. He is with solid 35years of baking experience. In
1986 Gardenia Bakeries entered to fist Loaf Bread production, with in short span Gardenia
Bakeries become bread market leader with astounding selling record. Gardenia’s multiply its
products chain throughout the years, which slowly become better and soon best.
Gardenia Bakeries now produce variety of Deli product like waffles, Toast buns, Cream
Rolls, Cupcakes and much more. Gardenia Bakeries has now 5000 workers all around Asia.
Gardenia Bakeries are growing and evolved through the years becoming better and better
each step. Leveraging on Gardenia brand strength. Gardenia now produce a variety of baked
produce to satisfy customers demand. Gardenia bakeries always associate with good quality
and taste, freshness and reliability. Gardenia recipe and method of making bread always
improve and keep the aroma and traditional maintained.
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Figure 1: Gardenia perceive value.
Gardenia Bakeries with is financial record and business strategy are help to continue growth
and more factories start up in Philippines. Gardenia Create more jobs placement For Local to
get good paid jobs in best FMGC Company. Moreover, Gardenia brand will become popular
around local people and. people are trust the quality of bread and start to buy easily recognise
the brand. Gardenia bakeries evaluate customers needs and satisfactions.so gardenia produce
local interested Bread Product like corn flavour, Chocolate, vanilla, red beans, loaf bread,
Wrap bread, also new product of Gardenia noodles. That’s why Gardenia sat on top in
Bakery product among with Competitor like Massimo, Fuji Bakery, Daily fresh.
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42%
31%
16%
10%
1%
Sales chart
Gardenia Bakeries
Massimo Malaysia
Daily Fresh
Fuji Bakery
Others
Figure 2: Base on Market Sales analysis 2018
Base on the figure 2 Gardenia established strong suit of business in the food industry sector in
Malaysia. Gardenia current market leader in production and wholesaling of bread with more
than 60% market share (By Sabry Tahir in the star business 2015).
Gardenia
Bakeries
Massimo
Daily Fresh
Fuji Bakery
Bread Manufaturing Market
Customers loyalty
and Satisfaction
Wide Choice
Quality and
Taste
Freshness
Limited Choice
Figure 3: Perceptual Map of Consumer Market
Swot Analysis for Gardenia Bakeries (Malaysia) Sdn bhd
Strengths
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Gardenia perceived superior quality products (Freshness and taste award) and continue years
and also Gardenia have improved wide coverage of distribution supply in main town to small
village side of Malaysia and top of the production making 6000 loaf bread per day.
Gardenia gain ability to rapid growth 13% in sales. Gardenia customers loyalty make them
multi awarded company, including 3 years continues super brand awarded.
Weakness
Gardenia bakeries also some lack points such as limited availability of product in usual
grocery shop and retail shops. Cause of high demand so stock availability this issue in
consumers views. More over gardenia bit high price when compare with other company
products. Above on this lower-class people thing twice to buy product whatever gardenia
ingredients pure quality and good nutrition also when customers think price is always matter.
Gardenia not have standalone shop for only sell gardenia product. Gardenia bread have lot of
sugary substances. So consumers have think twice when consuming product.
Opportunities
Gardenia Make good product and always Conscious customer satisfaction and nutrition
fulfilment. Economy growing fast lots of people in Malaysia is become financial status as
gaining to lower class to middle class or upper average, so consumer level for gardenia also
increase. Gardenia management also doing the best improvement on market coverage and
distribution expands. Gardenia also target large consumer market for in future.
Threats
According to recent economic research lot of converging competitors in bread making
market. Lot of food industries start step inside to bread market the demands will be less.
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Gardenia did not have stand alone shop cause always depends on retailer shops. So, price
barging from retailer will be less sometimes retailer barging less profits. New governments
new tariff rate high and inflation rate high also become another threat for Gardenia. Gardenia
has supplier side threats also like low quality material supply and price hiking when global
petrol price goes up. When government reduce sugar subsidy also effect Gardenia bread
production.
Figure 5: Net income and Profitability for Gardenia Bakeries report by QAF 2018
2.0 Consumer Decision making Process
1.Customer Need
Gardenia always so innovative keep on mind customers’ needs on current time. Gardenia
have capability to detect customers need product and highlight marketing ability.
Gardenia makes use consumers comment section across their online and offline medium
promote the new product. Gardenia Advertise their product to online platform to increase
customers interest to buy Product.
2.Search for Information
Gardenia is transparent with their Customers with all about the company details and
information easy can search by internet .so their automatically know well know the Gardenia
products and customer do their risk management prepare. Gardenia advertise by varies source
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by Radio, Newspaper and Magazine. Customers defiantly discuss about brand with their
Family and friends base on own experience.
3.Evaluation of Alternatives.
Customers after get trust on the brand their must evaluate the Factor like price and quality.
Gardenia always sat top notch of quality in product and price. customers evaluate all the
details and Check their satisfaction parameter is most.
4.Purchase Decision
Customers Always search best product and easy get all the stores. Gardenia to lot of
Marketing Campaign about their product. When customers get good thoughts about Gardenia
customers will by Product. Their start to consume and start trust Gardenia Brand.
5.Post Purchase Evaluation
Customers always go for good product that’s why Gardenia production value increase year
by year. Customer love to Buy Gardenia breads for regular consume and have good trust on
it. Gardenia also full fill customers’ expectations.
MARKETING SEGMETATION, TARGETING AND POSITIONING (STP)
Segmentation, targeting and positioning is used by Gardenia to promote product in market
with goal for increase sales.
Segmentation
Market Segmentation is the process of dividing market into expressive and identifiable.
Gardenia has Segment their consumers in to two main categories which is psychographic and
demographic.
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Psychographic
Psychographic is according to the individual basic personality, thinking and living
environment. Gardenia focus on the customers lifestyle who are demand for freshness, good
quality, and variety and delicious. Consumers now days not want simple bread loaf much
more health conscious.
Varies Consumer Feedback Percentage
Daily fresh 23 15.8%
Gardenia Bakeries 123 60.8%
Massimo 43 32.2%
Fuji Bakery 15 8.4%
Others 5 2.8%
Table 1: Shows Consumer Feedback on the current brands.
The table 1 shows actual result done in klang valley and found 4 Major Brand in Malaysia
including Daily fresh, Massimo, Gardenia, Fuji Bakery and other mix brand of breads.
Among all that gardenia scored well in consumer circles. Cause gardenia get 61% with
highest trustable brand. Massimo get 32% second well-known brand and Daily fresh get 15%
Fuji bakery get 8% other prefer homemade bread or Arabian breads. Among that brands
Gardenia is top using fine material and health ingredients to make breads. Gardenia never
using artificial colour substance or fruits flavours.
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Demographic
Demographic market divided by many levels like age, gender, income, ethnic background.
Gardenia focus on age factor youngsters’ taste, because young people always love to buy
sweet taste flavour and comfortable packaging, for that Gardenia came thru with new product
as waffles satisfy energetic youngsters.
For the senior citizen also concern for Gardenia. Usually senior citizens have digestive
problem and lack of nutrition’s. So, Gardenia Came out with breakthrough product whole
wheat fibre bread with full of fibre and high level of vitamins. Socio Culture also can be fact
of people buying Product. People believe customs and life style. Malaysia is majority Muslim
Country so Gardenia Ensure all their product Comply with Halal policy No Pork, No
Alcohol. From this strategic Gardenia get solid Customers and also Gardenia became
Popularity in Malaysian Muslims.
Targeting Market
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Gardenia Found good target market after the segmentation. Gardenia research for target
market and come up with strategic, that strategic suitable for all type of consumer groups.
So, Gardenia must able to improve strategic for achieve target goals. Gardenia set goals as
High Sales and Number one position in Bread Market. Gardenia have plenty good online
platform for advertise the product impress youngsters with colour full waffles sweet tasty
Choco cakes and much more. Whole wheat bread advertises in newspaper for old timers and
senior citizens.
POSITION
A well-known bread products best thing is winning the consumers heart, even though quick
bites means our product will flashing on their mind. Some companies have advertised song or
tag line to make our consumers remember that particular product with that song or tag line.
Gardenia also have tag line” SO GOOD …you can even eat it on its own” it means we can
eat gardenia bread without any dish also will taste good too. Alongside Gardenia always
provide high quality of bread and fresh and tasty. Gardenia always follow good hygienic
practice in work place their Food safety Policy and HALAL Policy are well maintaining.
Gardenia Certified in FSCC 22000:2015 and Hazard Analysis Critical Control Point
(HACCP). Gardenia Highly commended by Malaysian Institute of Food Technologies
(MIFT). More over Gardenia win 3 Consecutive years of Super Brand Award. 2003 to 2005
(Business The Star 2004) .
4.0 Competitive Analysis
On Bread Market Field Gardenia have New threat and improving wisely was Massimo
Company because Massimo is the second large bread selling company beside with Gardenia.
Massimo is founded in 2011 in fist factory in Sungai Buloh Selangor. The company Owned
by Robert Kuok.
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Table 2: Shows Comparison between Gardenia Bakeries and Massimo.
Economical Factor
Consumers buy a product depends on their income if high income people always choice
healthy and tasty toast bread with raisin oats, and other nutrition goods. But lower income
people always more concern on cost cutting at same time search for good quality product like
classic white bread. This is how economical factor affect consumers purchasing. (Business
blog 2018) low income people usually single bread winners. So, they more concern about
their spending as single penny (New York times 2013). But Gardenia also care about their
health so deliver quality breads for them too. Classic white bread also has much healthier
than other product in market.
Political Factor
Development of current political issues and global petrol price in hike sugar and flour price
also became raise to high (New Strait Times 2013). Government worried about Malaysian
people’s health issues cause new health data shows diabetes patients counting increase year
by year so government reduce sugar subsidy for all food manufacturing companies. (The Star
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2014). also, one of the reasons for Production cost gardenia become high. When Malaysia
arise with political racial issue make more suffer for gardenia marketing.
In Past years Gardenia purchase any flour with Federal Flour Mill Bhd (FFM) which is
owned by Sugar king Robert Kuok, also founder of Massimo Company. When problem rise
due to Gardenia switch supplier to Malayan flour mill and Padi Beras sdn.bhd. cause of
production high demand. Some of Malaysia Chinese start boycott Gardenia Cause. More over
some Groceries shop owners selling Massimo bread to reduced price automatically demand
for Gardenia was decrease. (The Star Online 2012)
Bargaining power of suppliers
Gardenia must chain relationship with lot of supplier’s top to bottom because their suppliers
by material to produce the bread. Gardenia have conflict situation when their main supplier of
sugar and flour became competitor found opposed bread company but Gardenia still buying
material with them so found issues in quality and supply issue, Gardenia give full important
to the customers they start to buy flour from Padi Beras sdn.bhd. Gardenia been overcome
threatening like this.
Bargaining Power of the Buyers
Customers always more concentrated then sellers. Customers buying the product high volume
are thing twice cause our product short term expire one so they more careful when buying.
Some how customers easily fall for the low-price cause same quantity but get low price
means their feel happy ,but some well analysis customers check product nutrition value and
quality then only buy the product.
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Marketing Objective
Marketing objective for the Gardenia is expanding companies current Market. Maintain the
number one position grow more. Research and Development must launch new product every
year. Target new customer with marketing analysis and produce new product by consumer
taste. Gardenia improves supply chain relationship suppliers. Entering to international market
improve company’s quality and capability to international standards. Gardenia improve
customers relationship bond. Gardenia Bakeries fist object is daily deliver good and fresh
products .
Marketing Mix 7
Product
Gardenia Bakeries was Step in to bread making line, with in few years, become king of bread
market. Product range also become peak high. Gardenia now produce many kinds of bread to
full fill customer need. It produces high fibre bread, low fat, whole grain bread and special
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flavour bread like butterscotch, chocolate much more. For kids Twiggies, Fluffy Buns,
Squiggles and extra. Gardenia make customers fill up their hungers with healthy snacks and
with good ingredients.
Price
Gardenia Bakeries use War based Pricing policy when fixing the price gardenia always think
twice, before challenger cost marketing, strategic offering. If calculate all the important
factors Gardenia set up the price and make sure always less price than opponent.
Place
Gardenia Bakeries is Establish Malaysian Company. The Product always accessible in all
type of market. Gardenia produce fresh product in every day. Fast distribution is main key of
success of Gardenia Bakeries. The supply chain system travel to every corner of the
Malaysia make it everywhere stock availability. Gardenia is an Associate company is Padi
Beras Nasional Berhad operate through several subordinate in other countries.
Promotion
Gardenia use advertisement to promote products It runs on many platforms like Television,
Radio, Printed Media, use Social Blogs, Media Platform like YouTube, Facebook, Blogs
Official Website for Marketing. Company make the feel good for people to buy products.
Gardenia runs various sales Promotion Campaign, which give free products. Gardenia
involve in many Charitable events also associated with healthcare organization.
Physical Evidence
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Gardenia Bakeries very transparent to their loyal customers the always shown their products
ingredient, marketing brochures, web pages Company profile, Gardenia release yearly annual
report of the progress and full details (QAF report 2018). For the customer contact Gardenia
have toll free number to communicate with our officers. Can contact Gardenia by 1800-88-
3228 (Malaysian toll-free Numbers, 2019). Some of Gardenia Consumer are senior citizens
encourage buy gardenia Whole wheat bread for the regular use because it contain low level of
sugar and High Fibre also help to maintain daily insulin level in blood. Most of hospital
prefer Gardenia whole wheat bread for breakfast to diabetes patients.
People
Gardenia appoint the best management team for every section of working environment.
Because people are making good quality product check product quality and maintain the
recipe and traditional aroma. A good skilled can sail in rough weather (Patrick Wilson 2003)
Gardenia bakeries employees well manage company reputations. For Malaysian requirement
Gardenia manage good FSCC and HALAL Standard operation procedure.
Gardenia logistic and distribution workers working well with their jobs because they are
retailing our product to all over Malaysia from hypermarket to street shops. our customer
service also always ready to help our customers complains and suggestions.
Process
Gardenia always Focus on the marketing process, like start to end when pre purchase to post
purchase until customer suggestion or complaint. Gardenia make smooth process until
delivery process. Gardenia have Research and Development Department for make our
product more quality and new flavours.
RECOMMENDATIONS
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Gardenia Improve a step ahead then other companies because their marketing strategic and
achieve a lot. From the Marketing Mix, Gardenia will achieve penetrations and close all the
gaps with high effective. Gardenia must increase market share in bread industry continuous
developing in product market as well. Gardenia must send their key production employees to
oversea training make them learn new pastry skills and Development.
Gardenia must do Free Campaign at school and colleges free product for student to impress
them. Gardenia must Conduct prize contest for buyer keep on buying to win the prize.
Gardenia Now doing Awareness program with some health organization keep doing like big
event level like Sugar-free run marathon, Fight for fit game shows as more.
Gardenia’s kids love product like squiggles, twiggies can attached packaging some cartoon
stickers or some fun game cards for impress kids to buy gardenia products.
5.0 Conclusion
Gardenia is Malaysia’s largest Bread Manufacturer. Producing daily pastry product. Gardenia
is customer friendly and deliver fresh bakery products. The Gardenia now started to grow up
international country like China, Philippines, and Thailand. Gardenia Maintain Marketing
Strategic thorough consumer demand analysis. Gardenia earn very loyal customers with that
Gardenia entering to Asian market. The analytical skills and marketing and management
skills makes Gardenia Stronger and Sustain in Corporate war. (The Times 2014)
References
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